SolarCity Corp (NASDAQ:SCTY) shares declined 7.47% on Monday to $50.89. In fact, the stock has tumbled more than 25% in the last three months. But Chris Umiastowski of the Globe Investor remains bullish on the company’s long-term future. The San Mateo-based company is disrupting old ways of providing electricity. It has emerged as a leader in offering low-cost solar electricity to consumers. The company has captured 36% of the U.S. residential solar market.

SolarCity Corp Has An Unstoppable Momentum

Solar power will be cheaper than grid electricity

Umiastowski says the solar installer has an unstoppable momentum. The recent dip in the stock offers a good opportunity to own SolarCity at a discount. Solar systems have traditionally been expensive. But costs are falling rapidly. Chris believes that, in the next five years, costs will come down to a level where rooftop solar power will be cheaper than grid electricity, even without government subsidies.

The company’s strategy to lease solar systems to consumers has worked well. SolarCity constructs and finances the solar systems, and leases them to customers who sign a long-term agreement. Right from the start of the contract, customers pay less for their electricity than grid power, and SolarCity gets recurring income over a 20-year period.

SolarCity’s project bookings jump 154%

Last quarter, the company’s project bookings jumped 154%. Its 36% market share is higher than the next 50 rivals combined. It speaks volumes about SolarCity’s dominant market position. Just like Tesla Motors Inc (NASDAQ:TSLA), SolarCity has adopted the vertical integration strategy to streamline the business and reduce costs. The company controls panel manufacturing, system design, installation, and sales.

SolarCity has also partnered with Tesla to deploy Lithium-ion batteries with panels to store excess power. This deal will allow customers to ditch the grid and still have “bulletproof supply” of electricity. Umiastowski expects SolarCity’s customer base to grow from the current 168,000 to one million by 2018. Then, the company will generate more than $1 billion in recurring revenue.

SolarCity shares inched up 1.49% to $51.65 in pre-market trading Tuesday.