WATERVILLE – People already dreading next winter’s heating bills might be able to reduce them with help from an energy loan program that began earlier this month.

The loan program through Efficiency Maine enables qualified applicants to borrow up to $15,000, at an interest rate of 4.9 percent for 15 years, for energy-efficiency upgrades such as a new heating system or weatherization of a home.

John Reuthe is program manager for the Sustain Mid Maine Coalition’s residential energy projects.

“In our area, our housing stock is old and not very energy efficient,” he said. “I think people are reluctant to spend the money in a lot of cases.”

Funding for the program, which began April 4, comes from a federal grant that Efficiency Maine is handling on behalf of municipalities. PACE stands for Property Assessed Clean Energy.

Each community needs to approve an ordinance enabling its citizens access to the program, and several have done so in central Maine.

Residents of Waterville and Winslow get an added bonus. The Sustain Mid Maine Coalition will provide up to $300 toward an energy audit, which is required for PACE loan applicants.

Such audits typically cost about $500, according to Reuthe.

Dana Fischer, who created the PACE program, said Efficiency Maine has received about 40 applications during the program’s first two weeks.

As of this week, 64 Maine communities had approved PACE ordinances, covering nearly half of the state’s population, Fischer said.

“We haven’t closed on any loans yet, but we’re expecting to have more PACE loans in the next couple of months than any loan program in the history of PACE nationally,” Fischer said.

“We’re encouraged by that. It’s no small commitment for people to borrow thousands of dollars to make improvements to their homes, especially in this economy, so it’s very promising.”

Loans will average about $8,000 each, Fischer said, and Efficiency Maine is estimating granting about 2,500 loans.

But Fischer said the organization’s goal is to generate enough capital so there are enough loans “to meet the demands of weatherization across the state.”

While an $8,000 loan is a substantial investment, Reuthe said energy improvements could pay for themselves in about seven years.

If upgrades are estimated to reduce a home’s energy consumption by 25 percent or more, the homeowner may qualify for up to $1,500 in rebates.

Reuthe said he anticipates more residents expressing interest in the PACE loan program, especially as heating oil prices continue to rise. Buildings with up to four apartments also qualify for the program, he said.

To calculate how much heating oil a home should burn, Reuthe said, divide the home’s square footage in half.

Waterville or Winslow residents interested in an energy audit or the PACE loan program can call 314-7198 or visit www.efficiencymaine.com/pace.