The incoming service cable is 1/0 aluminum, which is most likely owned by the Utility, not the homeowner. True that they do not need to follow NEC ampacity requirements, but that cable still needs to be accounted for in the project. Best advice is to find out what your peak demand is and determine from that value, what the remaining capacity of the service is. NEC 220.87 dictates duration for the measurements. If the Utility can get this information from the smart meter, that is perfect! Hopefully the electric heat has been off for a while so that the peak demand value represents the load recorded with the electric heat gone.
Also, there is a tap at the SE conductors, so there are more loads -- possibly a second small panel somewhere on the property not included in the 200 Amp service panel. All the more reason to get an answer on what the peak demand is before proceeding with any work.