You could place the heating element on top, and the wafer thermostat would be fine on the side of the incubator. One thing you might want to do, is use the Bi-metal thermostat, as they don't require a new wafer every year, and they work great. Here is a great video about how they work, and how well they work. They are also only 15 dollars, and have free shipping. You could place the fan on the back side of the incubator, and that would work fine.