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Just to give another data point. My 20KW generator is located about 2 feet off of the side of my house. Granted it's not right next to a living area but more near the garage. But the family room is on that side of the house with a window in close proximity. When the generator starts up doing it's weekly cycling, you can hear it yes. But it's not as bad as you might think. It sounds like a lawn mower in the distance and certainly doesn't require me to crank up the TV in the family room to compensate for the noise. But this is with the windows shut. I would definitely expect the noise to be louder with the windows open.
Another option and something I'm not sure if you want to spend the extra money, but I think Generac has a quieter line of generators. Also Kohler makes generators which are highly regarded and are known to be quieter. But again, you're going to pay a bit more; although the price difference might be better if you're considering having the expense of locating the generator at the edge of your property.
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