Energy Secretary Ed Davey has said that the decision to reduce subsidies was driven by the falling costs of generating onshore and solar energy, and not political pressure.
He told ITV News: "Because of our investments in renewable energy, we are seeing the costs fall ... It means we can still develop onshore wind, still develop solar, but it means we can also bring on some of the technologies for the next decade like offshore wind".
Rural wind farms have been a source of coalition tension, with many senior Conservatives staunchly opposed to the turbines, which Liberal Democrats say are needed to meet environmental objectives.
Danny Alexander has insisted that onshore wind energy will continue to play "a big role" in the UK, despite the decision to reduce Government subsidies in this area.
The Liberal Democrat Chief Secretary to the Treasury said state help for onshore wind and solar was being reduced "slightly" in favour of offshore wind.
But he told BBC Radio 4's Today programme that the move would present better "value for money" and could open the way for an extra 10 gigawatts of energy by 2020.
The "strike prices" for renewable energy - the amount of subsidy the taxpayer pays to entice investors to make long-term commitments - is already set well above the current market value, but will be slightly lower for onshore wind and solar.
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."