Impacts between planetesimals have largely been ruled out as a heat source in the early Solar System, by calculations that show them to be an inefficient heat source and unlikely to cause global heating. However, the long-term, localized thermal effects of impacts on planetesimals have never been fully quantified. Here, we simulate a range of impact scenarios between planetesimals to determine the post-impact thermal histories of the parent bodies, and hence the importance of impact heating in the thermal evolution of planetesimals. We find on a local scale that heating material to petrologic type 6 is achievable for a range of impact velocities and initial porosities, and impact melting is possible in porous material at a velocity of > 4 km/s. Burial of heated impactor material beneath the impact crater is common, insulating that material and allowing the parent body to retain the heat for extended periods (~ millions of years). Cooling rates at 773 K are typically 1 - 1000 K/Ma, matching a wide range of measurements of metallographic cooling rates from chondritic materials. While the heating presented here is localized to the impact site, multiple impacts over the lifetime of a parent body are likely to have occurred. Moreover, as most meteorite samples are on the centimeter to meter scale, the localized effects of impact heating cannot be ignored.