question was: "
can a whole house surge protector be mounted at a sub panel and still work properly?"
Yes. That is how it is design.
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I was not wordy in my reply since it was on phone w/o keyboard. I should add more. Yes, a whole house surge protector will do its job mounted on a sub panel. What is that job? To clip off and direct to ground any energy in voltages that come along above its voltage clip rating.
So, yes, put it on a sub panel and it will do its job.
But one should ask, why is it being added to the system?
I assumed it was added to the sub panel because spike protection was wanted THERE. If the object is whole house spike protection, then no, that is not the best location as everyone else here has pointed out.
We mfgr and sell a 75,000amp peak 480V 3ph unit with internal fusing and LED indicators - to put at power entry to individual industrial aerospace machinery. One 8 million dollar 15 axis fiber tape laying machine was blowing $ 8,000.00 servo drives every other week for a year from incoming voltage spikes. The machine was well built, had isolation transformers on inputs. Although it was great business for us to replace those drives so often, I had to solve the issue so developed this little TVSS unit. There has not been a failure now in 5 years. So yes, putting these on 'sub panels' can work; one just has to identify what the object of the unit is to know if that is a good location.