Privacy-preserving smart meter data collection and analysis are critical for optimizing smart grid environments without compromising privacy. Using homomorphic encryption techniques, smart meters can encrypt collected data to ensure confidentiality, and other untrusted nodes can further compute over the encrypted data without having to recover the underlying plaintext. As an illustrative example, this approach can be useful to compute the monthly electricity consumption without violating consumer privacy by collecting fine-granular data through small increments of time. Toward that end, we propose an architecture for privacy-preserving smart meter data collection, aggregation and analysis based on lattice-based homomorphic encryption. Furthermore, we compare the proposed method with the Paillier and Boneh–Goh–Nissim (BGN) cryptosystems, which are popular alternatives for homomorphic encryption in smart grids. We consider different services with different requirements in terms of multiplicative depth, e.g. billing, variance and nonlinear support vector machine classification. Accordingly, we measure and show the practical overhead of using the proposed homomorphic encryption method in terms of communication traffic (ciphertext size) and latency. Our results show that lattice-based homomorphic encryption is more efficient than Paillier and BGN for both multiplication and addition operations while offering more flexibility in terms of the computation that can be evaluated homomorphically.