No, You will not have enough heat if it is outside of the rack. It is best used inside the pegboard and even better when it is used as belly heat. (this way you will get more out of it), and have less heat escape. The way you are wanting to do it will not help you at all because the heat will escpae into the air. When using heat tape, there is no option not to use a thermostat. Always use a good thermostat no matter what! It is needed unless you want your herps roasted or melted.
Pegboard is used and Plywood (without holes), holds more heat than the pegboard, but either way you whould use a thermostat.
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