First, make sure that the wiring connectors are turned the right way, that none of the pins are bent and that they are firmly pressed together.
If the wiring is ok, then the speed sensor is suspect - the pickup comes from a magnet mounted on the front roller pulley and a speed sensor that detect it. To resolve this problem, follow these steps:
Connectors can become loose over time. Corrosion can build up around the terminals and cause increased resistance. Faulty wiring or bad or loose connections are the most common cause of this problem and should always be checked first.
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Have you the ability to take the case or covers off the machine? I think it's obvious that you do... so I think the thing to do at this stage is to inspect all wiring to the console for crimping, severe bending, or other damage.
If none is found, if all the wires look still-OK and likely to be conductive of signals, then you probably have either a defective motor controller board, or else a defective console.
And honestly I'm not sure which is more likely to be at fault. But you've tested the motor, which should eliminate that.
I am not sure I can figure out which of the two is at fault for you, but you have done well so far (of course, with that much going for you from the start.)
Tell me, when the machine is powered up with the covers off, what lights show on the motor controller board, at first and once the machine is initialized, but before it is used?
Then, if you can start using it / moving the parts or the belt, one light ought to flash on and off regularly. Does it?
Let me know how it goes, at your convenience. Thanks.
In sum, is the sensor working but no LED light changing state as the machine turns?
Hm. If there's no such thing on the schematic, then what LEDs *are* on the motor controller board according to the schematic?
Up or Down in speed, then, understood.
The usual design has a speed-sensor LED included.
So I presume the only LED lit that you've seen is just the Power LED, correct?
Then there's no indicator there as to what's wrong, or where.
To sum up: E1 is kind of a general error, as treadmills generally are concerned.
For a Sole treadmill... the E1 is supposed to be an electronic or electric problem, often in the controller board.
Check that motor controller board in detail, with an up-close inspection, and see if any capacitor is burst, or bulging, or leaking fluid.