E1 on a Haier means the indoor and outdoor units are no longer talking. Each half has its own board, and they pass settings and status across the interconnecting cable, so when that conversation stops the system cannot coordinate and shuts down. The signal on that pair is low voltage, which is why a marginal connection can break it long before a part fails.
The interconnecting cable carries the signal and is the most frequent cause. A terminal screw that was never fully tightened at installation, a core that has corroded inside a connector, or a cable crushed against a wall penetration will break the link. Even a slightly high resistance joint is enough on a low voltage signal.
Either board can fail on its communication circuit while everything else about it works. The indoor board is sheltered; the outdoor board deals with heat, moisture and salt air and fails more often. A board is only condemned once the cable and the supply have both been proved sound, because those are far cheaper.
Both boards need a steady supply to hold a signal. If voltage sags when the compressor starts, or the circuit is shared with a heavy load, the link drops and E1 appears. Repeat codes at the same time of day, often when other equipment runs, are the pattern worth listening for.
Isolate both units for five to ten minutes, then restore power and watch the restart. A link that re-establishes and stays up suggests a transient event such as a supply dip. One that drops again within minutes is a live fault, and resetting it repeatedly tells you nothing further.
The interconnecting cable is checked terminal to terminal for tightness, corrosion and correct cores, with continuity tested on each conductor while the cable is flexed. Any joint along the run is opened. This is where most E1 codes are found, and it costs nothing but time.
With the cable proved sound and the supply stable, each board communication output is measured against what it should be sending. A board that is silent on a circuit that is known to be good has failed. Testing the output rather than changing the board on suspicion is what protects the cost of it.