The effect of high dose vanadium ion implantation and pulsed laser annealing on the crystal structure and sub-bandgap optical absorption features of V-supersaturated silicon samples has been studied through the combination of experimental and theoretical approaches. Interest in V-supersaturated Si focusses on its potential as a material having a new band within the Si bandgap. Rutherford backscattering spectrometry measurements and formation energies computed through quantum calculations provide evidence that V atoms are mainly located at interstitial positions. The response of sub-bandgap spectral photoconductance is extended far into the infrared region of the spectrum. Theoretical simulations (based on density functional theory and many-body perturbation in GW approximation) bring to light that, in addition to V atoms at interstitial positions, Si defects should also be taken into account in explaining the experimental profile of the spectral photoconductance. The combination of experimental and theoretical methods provides evidence that the improved spectral photoconductance up to 6.2 µm (0.2 eV) is due to new sub-bandgap transitions, for which the new band due to V atoms within the Si bandgap plays an essential role. This enables the use of V-supersaturated silicon in the third generation of photovoltaic devices.