I do see your point of view, but I actually feel that the mod is balanced well enough as it is, all things considered.
To my mind, this mod primarily fulfills an aesthetic purpose. It deliberately provides green energy early on, which feels nice and is also useful for certain challenge runs. And, just as important, it remains competitive with (and can thus generally replace) vanilla solar panels + accumulators. It also combines well with coal backup power, and it just looks much nicer than its alternative, to me at least.
Regarding your suggestion, making the basic heat exchanger pollute feels plain wrong to me. And even if it creates some seemingly reasonable middle-ground between coal and vanilla solar power, this will greatly diminish the relative usefulness of the thermal solar complex already in the early mid-game, which runs completely counter to the goal of this mod. Besides, the thermal panels still take up a lot of space, and manufacturing them binds up a lot of the extraction/production capacity that is likely to be available in the early-game, where managing the amount and location of pollution and clearing a few nests isn't that difficult anyway, so I don't think its particularly overpowered. The real, practical benefits seem quite small to me, and it doesn't take that long until you can unlock and start producing solar panels either.
Since early green power is a goal of the mod, it has to depart a bit from the intended progression of the base game. It's a choice. That being said, it might be a bit overpowered how the mod allows you to produce green energy around the clock with the simple inclusion of steam storage. It's still "better" than the original mod, which didn't even need that, but it could be considered a weak point of the mod, and I don't really know how to address it. Maybe combining it with some other mod (if it exists) that makes fluids and gases dissipate heat over time could help make things more balanced, but there are definitely various potential problems with that.
Anyway, those are my immediate thoughts on the matter. What do you think?