Chevron

Peterborough Accelerated Net Zero (PANZ) – Net Zero Living Demonstrator

Project ongoing

The Peterborough Accelerated Net Zero (PANZ) project is helping local authorities move beyond ambition and into delivery—turning Net Zero plans into practical, investable, community‑focused action. By building tools, frameworks, and business models that can be replicated across the UK, PANZ is equipping local authorities with a practical way to design tailored Net Zero initiatives and delivery plans that reflect the social, demographic, and economic makeup of the communities they serve. Helping them to enable and accelerate decarbonisation projects.

The challenge

Local authorities often face barriers in delivering Net Zero projects including limited resources and technical expertise, complex financing and risk profiles, community trust and engagement challenges, and difficulty in scaling solutions beyond pilot projects.

When it comes to decarbonising homes, rural off-gas communities face unique difficulties including high installation costs, a lack of knowledge or confidence in the benefits and reliability of heat pump technology, and local infrastructure constraints. Traditional heating business models do not effectively address the unique needs of rural areas, requiring innovative and tailored approaches to make heat pumps viable.

These challenges are compounded by the urgent need to decarbonise energy systems to meet climate goals, making innovative solutions critical for success.

The PANZ project aims to tackle these barriers head-on by leveraging cutting-edge digital tools, community engagement frameworks, and new replicable business models to enable and accelerate the energy transition.

The innovation

Having secured £2.75m from Innovate UK as part of the Net Zero Living Pathfinder Demonstrator programme. PANZ brings together a consortium of expert partners to develop innovative, scalable, and replicable solutions to decarbonisation challenges. The project will create a comprehensive platform that integrates technical, social, demographic, and economic data to develop effective Net Zero plans. These plans will include customized financial strategies, engagement activities, and training to encourage adoption of Net Zero technologies. Building on Peterborough’s pioneering Local Area Energy Plan, the project will further tailor energy plans to the specific needs of the community.

Led by Peterborough City Council, the PANZ consortium includes Energy Systems Catapult, Cambridgeshire County Council, Nordic Energy, edenseven and Peterborough Environment City Trust (PECT). Energy Systems Catapult is bringing its expertise in consumer research, business model innovation, and commercialisation to the consortium. We are addressing barriers to heat pump uptake and district heating expansion by:

  • Designing new business models for rural heat pumps that overcome trust, supply chain, and affordability barriers.
  • Developing delivery models for small-scale district energy networks that complement DESNZ heat network zones and reflect local needs and priorities.
  • Engaging investors to explore financing mechanisms and reduce risk.
  • Rigorously testing business models with local and national residents to embed customer needs in service design and maximise uptake.
  • Ensuring solutions are replicable, scalable, and embedded in council decision‑making.

Expected impact

  • Through its blueprints and frameworks for deployment, the PANZ tool enables local authorities to accelerate their journeys to Net Zero.
  • By embedding delivery into council decision-making, PANZ is creating demand for skilled installers, engineers, and planners, strengthening local supply chains, and attracting investment into infrastructure
  • Implementing the novel business models increases access to low-carbon heating solutions, including in hard to decarbonisation areas.
Dots pattern Dots pattern

Reports and insights

Find out more about business models and funding mechanisms for heat pump deployment, delivery models for small scale heat networks and how to deploy a One Stop Shop by downloading our reports here. You’ll also find key insights from the work of Energy Systems Catapult and our PANZ project partners.

Expand this section to download the reports

Chevron
WebIcon-Download-01

Business model and funding mechanisms to support heat pump deployment

This report provides local authorities with a comprehensive overview of business models and funding mechanisms that can accelerate heat pump deployment, helping them identify practical, scalable solutions to reduce financial and non‑financial barriers.

WebIcon-Download-03

A go-to-market approach for a One-Stop-Shop support service

This report sets out a clear, evidence‑based go‑to‑market strategy for accelerating heat pump deployment through a retrofit One‑Stop Shop. It outlines the landscape of current service offerings, priority customer segments, delivery partnerships, and financial considerations to support effective local rollout.

WebIcon-Download-01

Delivery models for small scale heat network deployment

This report provides local authorities with a structured assessment of key delivery models for small‑scale heat networks, outlining their roles, risks and responsibilities across the project lifecycle. Its findings help councils make informed, strategic decisions by comparing model suitability, highlighting enabling actions, and clarifying the pathways most likely to support effective, low‑risk heat network deployment.

WebIcon-Download-03

Consumer attitudes to heat pumps and local authority-led support services

This report provides an up-to-date, evidence-based summary of consumer attitudes toward low-carbon heating and the key practical and perceived barriers to heat pump uptake. It demonstrates how Local Authority–led services, including a Retrofit One Stop Shop, can meaningfully accelerate uptake and highlights target customer groups in the short- and long-term.

Net Zero Places

We empower and advise Local Authorities, Network Operators, and Central & Devolved Governments to take Net Zero action…mobilising the plans, projects, processes and partners you need to decarbonise local areas.

Find out more

Want to know more?

Find out more about how Energy Systems Catapult can help you and your teams