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Smart grid deployment focuses on reliability, cost savings and energy efficiency as well as customer satisfaction. Many utilities are turning to Smart meter infrastructure technology. Smart Energy profile was motivated by requirement to enable personal energy management in Home area networks. In Multi-dwelling units, wireless networking such as WiFi and ZigBee could be feasible, as range of communications can be extended to communicate with the gateway. In such a network, routing is one of the fundamental components. However, designing secure routing protocols for wireless mesh networks is a challenging task due to various reasons. In this paper, we provide a comprehensive security mechanism for source routing protocol in wireless multi-hop networks, which is particularly suitable for multi-dwelling environment.