Frame Challenge
The generator should not be on a pad attached to the house (what you have now).
The generator should not be on a pad next to the house (what others have suggested).
The generator should be far away from the house.
This is primarily for safety with respect to carbon monoxide (super dangerous) and exhaust in general. For example, Generac says:
- 18 inches (1.5 feet) from the house
- 60 inches (5 feet) from doors, windows, and fresh air intakes
I got a "portable" generator and it actually says you should run it 20 feet away from the house. That is a bit extreme (but with no good place between 5 feet and 20 feet, I am actually putting it 30 feet away where I have a good spot for it). But you definitely don't want a generator right next to your house.
In addition to carbon monoxide and exhaust, the farther away from the house, the less the noise will bother you. No back up power system is quiet except a battery backup (e.g., Tesla Powerwall). Some generators make a lot more noise than others. Of course, a bit of noise for a few hours is an acceptable trade-off for having your refrigerator, computer and air conditioner running during a utility outage. But a few feet will make quite a difference.
If your generator is going to be powered by natural gas, then distance does affect installation cost. If it is going to be powered by a separate propane tank or by gasoline then the only down-side of moving it away from the house is a one-time cost for a longer electric cable.