As part of the deal, GE will provide servicing support for the projects TerraForm owns. GE has refused to comment the size of the stake in TerraForm it now owns.
The group's renewables business CEO Anne McEntee said the investment would also help develop projects in Latin America, India, China and Europe.
The company said it was the first wind manufacturer to invest in the yieldco since it was floated on the Nasdaq stock market in 2014.
TerraForm has a portfolio capacity of 1.7GW worldwide, mostly in solar. In November, SunEdison agreed to acquire US developer First Wind. It's 1.3GW portfolio of wind projects was shared between SunEdison and the yieldco.
Last month, the Atlanitc Power Corporation also sold its 521MW wind portfolio to TerraForm for $350 million.
Acquisitions
Elsewhere, SunEdison has announced the 100% acquisition of Indian wind project developer Continuum and Central American renewables developer Globeleq Mesoamerica Energy (GME).
Continuum has a portfolio of over 1.4GW of projects in development, in construction or online in India.
Private equity firm Actis held a 70% stake in GME, with Mesoamerica Power holding the remaining share. Its portfolio includes four operating wind projects with a combined capacity of 243MW and has a further 80MW under construction and 246MW in development across Central America.
The US-based firm said it intends to offer the projects to TerraForm.