BIDDEFORD — As the price of heating oil continues to rise, the cost of weatherizing homes ”“ to reduce the need for fuel ”“ seems more than ever to be a worthwhile investment.

It can be especially cost-effective for those Maine residents who take advantage of a new, low-interest loan program being offered by Efficiency Maine.

Launched on Monday, the Maine PACE Loans program allows eligible Mainers to borrow between $6,500 and $15,000 to spend on energy improvements like better insulation, a more energy-efficient heating system or replacing inefficient appliances and lighting.

These loans, with a fixed 4.99 percent interest rate and up to 15-year payback period, can make expenditures on weatherization possible for those who couldn’t otherwise afford to do so.

Loan payments could be as low as $51 and up to $283 per month, depending on the amount of the loan and the length of time for which it is borrowed.

These loan payments may also be offset in whole or in part by energy savings, said Dana Fischer of Efficiency Maine. While there is no income eligibility to qualify for a loan, he said, there are some conditions.

PACE loans are only available for properties of up to four units; property owners must be current on property tax and sewer payments; and the loan can’t exceed the property’s equity.

In addition, the properties must be located in a community that has a PACE ordinance and contracted with Efficiency Maine.

Approximately 60 communities, representing 42 percent of Maine’s population, have already fulfilled the requirements to allow their residents to take advantage of the program, said Fischer.

At least eight York County municipalities have passed PACE ordinances, including Alfred, Arundel, Biddeford, Dayton, Kennebunk, Saco, South Berwick and Waterboro.

Since the program started, said Fischer, Efficiency Maine has received more than 20 applications. He said he expects many more as people find about the program.

Maine PACE Loans are being funded by a $20 million Department of Energy Grant received in 2009.

That amount of money would allow the state to weatherize about 2,500 homes at $8,000 each, said Fischer.

Money generated by monthly loan payments will allow the agency to continue to award new loans.

Also, said Fischer, Efficiency Maine will continue to look for new pots of money in order to reach its ambitious goal of weatherizing 100 percent of Maine’s homes by 2030.

Biddeford’s Environmental Code Enforcement Officer Brian Phinney, who was largely responsible for drafting the city’s PACE ordinance, said the voluntary PACE program can be a good deal for those who want to make energy improvements but don’t want to shell out a large chunk of money up front.

Since the loan can be transferred to a new owner with the sale of a home, the program can even make sense for those who don’t plan to own their homes for the entire term of the loan, he said.

Maine is not the first state to have a PACE program. The first programs were tied to property tax rolls and have been stopped pending court review, said Fischer.

The Maine program, he said, which is a hybrid of earlier such programs, “is the future of PACE.”

For more information about PACE, visit www.efficiencymaine.com/pace, or call 1-866-376-2463.

— Staff Writer Dina Mendros can be contacted at 282-1535, Ext. 324 or dmendros@journaltribune.com.