Australia’s outer suburbs are emerging as some of the strongest markets for electric vehicles, with new data showing a significant overlap between EV uptake, novated leasing and household rooftop solar.
Analysis from the National Automotive Leasing and Salary Packaging Association (NALSPA) for the second quarter of 2026 found outer-suburban and growth-area communities dominated the top 10 Australian postcodes for battery electric vehicles acquired through novated leasing and the Federal Government’s Electric Car Discount.
Every postcode in the top 10 had a rooftop solar penetration rate above the average for its respective state or territory.
NALSPA says the figures suggest households with access to rooftop solar are increasingly seeing an opportunity to combine lower-cost vehicle charging with the tax advantages available through novated leasing.
Victoria accounted for five of the 10 highest-ranking postcodes.
Tarneit, in Melbourne’s west, led the country with a solar PV density of 49%, followed by Werribee at 36%.
Sydney’s Kellyville ranked third, with rooftop solar installed across an estimated 53% of properties, while Marsden Park was fourth with 59%.
Coombs in the ACT ranked fifth, followed by Clyde North in Victoria, Springfield Lakes in Queensland, Craigieburn and Cranbourne in Victoria, and Baulkham Hills in NSW.
Top postcodes for EV uptake
The top 10 postcodes for BEVs acquired through novated leasing and the Electric Car Discount during Q2 2026 were:
- Tarneit, VIC – 3029 – 49% solar density
- Werribee, VIC – 3030 – 36%
- Kellyville, NSW – 2155 – 53%
- Marsden Park, NSW – 2765 – 59%
- Coombs, ACT – 2611 – 46%
- Clyde North, VIC – 3978 – 47%
- Springfield Lakes, QLD – 4300 – 57%
- Craigieburn, VIC – 3064 – 40%
- Cranbourne, VIC – 3977 – 43%
- Baulkham Hills, NSW – 2153 – 43%
For comparison, average rooftop solar density is 32% in Victoria, 40% in NSW, 43% in the ACT and 55% in Queensland, according to Australian PV Institute data cited by NALSPA. The national average is 41%.
NALSPA CEO Rohan Martin said the results showed EV adoption was increasingly extending beyond traditional assumptions about who buys an electric vehicle.
“Working Australians and their families living in the outer suburbs where rooftop solar is widespread are making the switch to EVs in record numbers and they’re turning to the Electric Car Discount to help make it a reality,” Martin said.
The economics can be particularly attractive for households travelling significant distances each week.
Outer-suburban commuters generally cover more kilometres than residents of inner-city areas, increasing the potential fuel savings from switching from petrol or diesel to electricity.
Those savings can increase again where a vehicle can be charged using electricity generated by household solar rather than purchased from the grid.
“If you live in the outer suburbs and have rooftop solar, it makes financial sense in the midst of unprecedented cost-of-living pressures to have an EV in your driveway too,” Martin said.
“Outer-suburban families, including many essential workers, are doing the sums. They are clocking up the kilometres, being stung at the bowser and discovering that switching to an EV can save them thousands of dollars each year.”
Novated leasing helping reduce the purchase hurdle
While EV running costs can be lower, the upfront purchase price remains a barrier for many buyers.
The Electric Car Discount removes Fringe Benefits Tax from eligible electric vehicles provided through employers, including vehicles acquired under novated lease arrangements.
That can substantially alter the whole-of-life cost equation for an eligible employee compared with purchasing the same vehicle privately from after-tax income.
Martin said the policy remained an important factor in making EVs accessible to working households.
“EVs are becoming more affordable thanks to government policies and a range of new models released to the market. But they still command a price premium compared with a petrol equivalent, and this remains a major hurdle for Australians to switch to cheaper-to-run zero emissions vehicles,” he said.
The Q2 figures also point towards a broader change in Australia’s EV market.
Rather than adoption being concentrated solely among early adopters or affluent inner-city buyers, the combination of longer commuting distances, rooftop solar, expanding EV choice and novated leasing incentives is making the financial equation increasingly relevant to households in Australia’s growth corridors.
With more affordable EVs entering the Australian market and rooftop solar already installed on millions of homes, the next stage of EV growth may increasingly be driven by households looking at the combined cost of transport and energy rather than simply the purchase price of the vehicle.
