Data aggregation is considered a viable security and privacy solution for smart grid as it allows to obtain the total electricity consumption within a region without disclosing individual data. However, existing data aggregation schemes give little consideration in their threat models to use cases where devices operate in untrustworthy environments and adversaries have physical system access, which is common in the smart grid. They cannot support authentication and resist physical attacks while maintaining data privacy and supporting fault tolerance for smart meter (SM) failures. Motivated by this, a secure enhanced and robust data aggregation (SERDA) scheme for smart grid is introduced in this article. The SERDA scheme provides enhanced security for key storage and updates based on physically unclonable function (PUF), while supporting data privacy protection and fault tolerance for SM failures without reliance on a trusted third party (TTP). Security analysis and performance evaluation demonstrate that SERDA meets the excepted goals and is efficient compared with related work.