Napier rock band Jakob has taken out the sixth annual Taite Music Prize for its "thought provoking" album Sines.

The three-piece band was named the winner at an invitation-only event attended by about 300 people in central Auckland on Wednesday night.

Judging panel member Pennie Black said Jakob produced a "beautiful, thought-provoking" album.

"Listening to Sines, one is spirited away to a mystical place, from which you don't want to return from."

The band's album art was also a stand out and complimented the emotion and creative soundscape summoned by the band, Black said.

Jakob beat out finalists Aldous Harding, Tiny Ruins, Delaney Davidson, Tami Neilson, Mulholland, Electric Wire Hustle, Kimbra, Grayson Gilmour and @peace for the top spot.

This was the first time Jakob had been named a finalist for the award.

The band received a $10,000 cash prize and free recording time.

The Taite Music Prize, in a similar vein to international accolades like the British Mercury Prize, recognises outstanding creativity for an entire album. The award, named after music journalist Dylan Taite, is in its sixth year.

The judging panel made its decision based on the artistic merit on the album. Sales, genres, artist recognition or popularity were not contributing factors, the award's organisers said.

Last year the award was taken out by Kiwi songstress Lorde for her album Pure Heroine.

The pop superstar split her prize of $10,000 cash and recording time between the award's six other 2014 finalists who had not previously won the award.

Lorde provided a short speech for Wednesday night's event on her 2014 Taite Music Award win.

Previous winners include Lawrence Arabia, Ladi6, Unknown Mortal Orchestra and SJD.

Lyttleton singer-songwriter Delaney Davidson and Auckland musician Don McGlashan performed highlight sets at Wednesday's awards ceremony.

The Independent Music NZ Classic Record was also presented at the ceremony - to reggae group Herbs for its 1981 album What's Be Happen?

Event organisers said the award aimed to acknowledge New Zealand's "rich history of making fine albums that continue to inspire us and that also define who we are".

The award was presented by Moana Maniapoto and accepted by Warrior Records founder Hugh Lynn, label and artist manager Will Ilolahia, and Herbs band member Dilworth Karaka.

When told Herbs would receive the award Karaka said he appreciated the acknowledgement.

"It was our first bunch of songs that we'd ever recorded and was a strong indicator for the political material we would carry on to do – the memory has carried on, and it's still our most popular record."

Independent Music NZ chair Christy Whelan said the 2015 Taite Music Prize finalists showed creativity and diversity was thriving among New Zealand's recording sector.

Recorded Music NZ chief executive Damian Vaughan said there were some fantastic New Zealand albums released in 2014, and this year's finalists were a true reflection of the best local recordings.

The panel to determine the finalists and winners was made up of 11 music media and industry specialists.