Residents could be able to stop construction of wind farms under tough new rules. New guidance is expected to tell councils that local people's concerns should take precedence over the need for renewable energy.
RenewableUK, an energy trade association, said the government's proposals of giving communities a financial "sweetener" for having wind farms in their area was "uneconomic."
Developing wind farms requires a significant amount of investment to be made upfront.
Adding to this cost, by following the Government's advice that we should pay substantially more into community funds for future projects, will unfortunately make some planned wind energy developments uneconomic in England, so they will not go ahead and that is very disappointing.
That said, we recognise the need to ensure good practice across the industry and will continue to work with Government and local authorities to benefit communities right across the country which are hosting our clean energy future.
Energy Secretary Ed Davey said the government's wind farm proposals aimed to ensure that communities would "see the windfall" of hosting developments in their area.
He said: "It is important that onshore wind is developed in a way that is truly sustainable - economically, environmentally and socially, and today's announcement will ensure that communities see the windfall from hosting developments near to them, not just the wind farm.
"We remain committed to the deployment of appropriately sited onshore wind, as a key part of a diverse, low carbon and secure energy mix and committed to an evidence-based approach to supporting low carbon power."
Residents will be able to stop the construction of wind farms under new guidance which puts people's concerns over the need for renewable energy.
As part of a package of measures that will significantly increase the amount of money communities will receive for agreeing to host wind farms nearby, the changes include hundreds of pounds off energy bills for householders.
Energy Secretary Ed Davey said the Government remained committed to "appropriately sited onshore wind" but a Downing Street source said David Cameron felt it was "important that local voters are taken into account."
However concerns have been raised that the new rules will mark the end of new onshore wind, making it harder to build wind farms, with not many communities keen to take up the "sweetener" of payments.
The renewables industry said that the much higher rate of payments would make some developments uneconomic and prevent them from going ahead.