A new community-led energy project will explore how neighbourhoods can work together to create warmer homes in Greater Manchester.
SP Electricity North West will officially trial its Net Zero Terrace project across selected areas in Middleton.
The power network operator has joined forces with Greater Manchester Combined Authority (GMCA) to test a new approach to the energy transition.
Net Zero Terrace was initially rolled out to demonstrate how to decarbonise homes on terraced streets using a smart local energy system.
Now, after receiving £7m from Ofgem’s Strategic Innovation Fund (SIF), Net Zero Terrace will work with residents to explore solutions at a street and neighbourhood level, rather than focusing on individual households.
The initiative will examine how home improvements, low-carbon technologies (such as solar, batteries and electric vehicle charging) and a smarter, more flexible electricity network can be coordinated to deliver greater benefits for local people. Partners will also explore how communities can play a bigger role in shaping energy projects and sharing in the value they create.
Richard Moulton, SP Electricity North West’s head of innovation, said: “As the electricity network continues to evolve local communities are at the heart of that change.
“The UK has more than 6 million terraced homes and the North West has just under half of those, so it’s important those properties are brought along with the fast developing energy transition.
“Our development of Net Zero Terrace will further allow us to understand how neighbourhoods can benefit from new technologies, while ensuring the transition to a low-carbon energy system is practical, affordable and delivers real value for local people.”
Terraced streets are found to be one of the most difficult to decarbonise with limited space for heat pumps.
The latest stage of the Net Zero Terrace project will include: community participation; shared physical infrastructure tailored for dense terraced streets; digital coordination through home and community energy management systems; removing the need for upfront household investment; and governance that provides long-term stewardship of the new shared infrastructure.
Over the coming months, the partnership will begin engaging with residents and organisations across Middleton to understand local priorities and help shape the project.
The findings will help identify whether a community-led approach could support healthier homes, reduce energy costs and provide a model that could be replicated in neighbourhoods across Greater Manchester and beyond.
Councillor Tom Ross, GMCA portfolio lead for transport, clean air and green city region, said: “This partnership is looking at how we can bring together innovation, local energy planning and practical delivery to help make warm, low-carbon homes possible.
“This work matters because too many households are still facing high energy bills, cold homes and limited options for affordable retrofit.
“By testing shared ground loops, smart local energy systems, insulation and low-carbon technologies alongside the Warm Homes Local Grant, we can explore new ways to make homes warmer, fairer and cheaper to run, while supporting our wider ambition for a greener and more resilient Greater Manchester.”
As well as GMCA, SP Electricity North West is partnered on the project alongside Buro Happold, Centre for Energy Equality, Looped Energy Communities, Northern Powergrid and UK Power Networks. This project is funded through the Strategic Innovation Fund, an Ofgem programme managed in partnership with Innovate UK. The project will start in December 2026 and run until August 2030.
