The 21 power plants, which are spread across seven states, have long-term contracts with an average remaining life of 20 years and would increase TerraForm’s annual cash available for distribution by about $5m.
TerraForm president and chief executive officer Carlos Domenech said: "This transaction furthers TerraForm’s leadership in the DG market segment – which is one of the most profitable and fastest growing clean energy market segments.
SunEdison chief financial officer Brian Wuebbels said: "We are pleased to announce that together with TerraForm, we have exceeded our goals for the projected 2014 drop downs.
"The sale of these assets generates immediate value for SunEdison by generating cash, and recurring value through SunEdison’s ownership of TerraForm."
