Is there a pic of this algae somewhere so we can be sure we are giving the best advice
Here are some bits of advice regarding algae which I have learned from members of this group and many years of keeping reef aquariums.
Look in this WMAS Newsletter to read my story of how I rid my tank of Hair Algae. Look at the articles "Saving a Reef" and "RDP Filtration".
Algae is the best water cleaner in the world because of how it eats all three Nitrogen compounds as well as Phosphate pollution, even before a test kit can show it. Test results at zero are always expected in a tank where there is lots of robust algae growth.
In these situations, because N and P are near/at zero, water changes are absolutely worthless and because new salt water contains trace elements that also feed algae, reducing/stopping water changes is an important help to getting algae under control.
A lid over the top of a reef aquarium creates a lack of gas exchange at the water surface. This keeps CO2 in and O2 out. Not good! This makes water pH go below 7.8, especially at night. A decline in pH at night is due to the stopping of photosynthesis which makes plants/algae use O2 and exhale CO2. Extra CO2 and low pH create an ideal condition for algae growth (and stresses animals, leading to poor health and a bloom of the Ich parasite).
The setup of a Reverse Daylight Refugium (see the article in the link above) is one of the best ways to combat nuisance algae. Otherwise, where a Refugium is not practical, make sure there is excessive water flow and turbulence of surface water to "de-gas" the aquarium. Setting a powerhead down low pointing up to the surface is an easy way to create essential gas exchange.
Canister (read external) filters and any sponge or floss filter (including filter bags), unless cleaned every week or so, are generally bad news for a reef aquarium because of how they harbor nitrifying bacteria producing excess Nitrate which grows algae like crazy.
Darkening the tank must be done long enough, complete enough and for enough times to cause the algae to start dying so that it becomes more tasty to the herbivores. The same algae, grown in different tanks, will taste different. Older growth algae is tough and bitter, whereas algae that is dying and/or dead tastes better to many herbivorous animals.
The most common problem in reef aquariums is where little nubs of tender algae start to grow out of control. Before the hobbyist realizes it, there is a full blown algae bloom. These tender nubs of algae would have been eaten, if there had been sufficient numbers of herbivorous snails, algae eating bugs, fish and hermits.
I cannot overemphasize the need for tons of herbivores to eat algae and keep it under control, especially in new tanks (tanks less than one year old). I agree with what has been said by others that sometimes the best way to deal with this is to scrub the algae off the rocks with a toothbrush trying not to let the LR stay long out of water. After brushing, getting bubbles out of the LR by twisting, turning and shaking the LR underwater prevents new pollution which would otherwise cause more algae growth.
Hope this helps.
Aloha,
Mark