A technically attractive solution for sustainable present and future is to integrate photovoltaic (PV) panels into building fabric of urban houses as an alternative to grid electricity, however, in Serbia this technology is rarely applied. To contribute to sustainability and create success conditions for renewable energy sources (RES) applications due its wish to join EU, Serbian government currently integrated RES into its new energy policy framework. In the near future in the separate law, the government will identify financial conditions to apply this policy and start RES use. To adequately inform this law, we calculated the electricity revenue during entire life of a two-floor house in Belgrade, Serbia and investment in PV panels (currently available on Serbian market) integrated in its entire envelope. It was discussed what are the current degree of economic viability of this solution and suggested level of state subventions needed to support the solar electricity production either by feed-in tariffs or other financial instruments. (c) 2005 Elsevier Ltd. All rights reserved.