Cessnock City Council has abolished the need to submit a development application before installing a wind turbine on a rural property.

From January 1 next year the State Government will pay 60 cents per kilowatt hour for electricity that is generated by a wind turbine and fed back into the main grid.

It could be worth up to $10,000 a year to residents.

Pokolbin's Tamburlaine winery owner Mark Davidson said he was considering installing a wind turbine on his organic property.

"We are looking into a whole green energy strategy using a combination of solar and wind power," Mr Davidson said.

"This rebate from the Government is a significant change, previously NSW was behind the other states in green thinking.

"For small business the compensation that will be offered is well above the long-term contracts offered by EnergyAustralia."

Cessnock councillor Bob Pynsent said the council was one of the first in the state to take such an active approach to alternative energy.

"There has been a 7 per cent rise in the Hunter for complaints relating to higher utility charges," Cr Pynsent said.

More than 500 rebates were issued to residents since June last year for rainwater tanks, solar hot water, ceiling installation and washing machines.

"Most systems would pay for themselves in seven years through the feed-in tariff scheme," Cr Pynsent said.