I did this before. It was just an "offlline" refugium with Chaeto and Pods. It was really thriving until it was mid-summer and I think the water got too warm. Algae started to fall apart and eventually most of the pods died.
I turned the lights on before I went to bed and turned off when I woke up, so like 8 hours with a LED Pink/Violet Grow light.
I also used an airline tubing and turned the Chaeto over once per day. I used a tiny, tiny little bit of Coral Frenzy which the Pods seemed to love.
Its too bad, all my fish loved those pods especially my Dottyback. But, I did not have the ability to cool the water in high heat.
I wouldn't do it again, unless it was "inline" with a sump. But, I have AIO and it was too risky to connect everything via external overflow.