This paper presents a routing overhead optimization algorithm called Staggered Link Quality algorithm to reduce routing overhead in large scale smart grid networks that use reactive routing protocols. A reduction in routing overhead will result in higher channel utilization and improved throughput. The proposed algorithm is evaluated over both power line and wireless network through experimental and simulation results. It is shown that the proposed algorithm not only reduces routing overhead but also reduces route discovery time and establishes near optimal paths. Reduction in routing overhead of up to 85% is observed under certain network conditions.