The Association, responding to the consultation on the emergency review, said changing the payment policy had a profound impact on its members who have already, or will have, planning consent for large-scale solar or anaerobic digestion (AD) by 1 August 2011.
CLA President William Worsley said: "The CLA represents rural businesses which face losses of more than £1million pounds as a result of the change in policy, and who collectively hold the keys to the delivery of land-based renewables in both the solar and AD sectors.
"The CLA reluctantly accepts that budget constraints mean payments for large-scale solar must be cut to preserve the FIT budget. Reducing the loss to investors for future projects could be fixed by introducing pre-certification of projects over 50kW, or by putting projects up to 1MW into the under-spent Renewable Obligation budget to help maintain reasonable rates for smaller installations."
Mr Worsley added that he welcomes the proposal to increase FIT rates for small AD plants, but argued the proposed rates will make little difference.
He said: "The largest opportunities for greenhouse gas saving and sustainable land management lie in making a FIT payment that will enable family farms to invest in AD. I would like to see a 'manure bonus' to help drive the most sustainable farm-based AD."