Having done a big rebuild job on my boat a few years ago, when she was on a mooring (grinding out old chain plates and fitting a new part bulkhead etc), I can vouch this works fine, but the noise from most portable generators will drive you and any neighbours nuts!
I ended up putting the generator in a dinghy and letting it hand away from the boat as far as my extension lead would allow.
It appears that when on the water noise seems to be magnified and travels further than on the land, also their is a lack of background noise - I guess this is one reason we all like being afloat so much!
I think you'll find a calourifier on your exhaust will produce plently of hot water, you could also take a look at these black shower water containers, even on a comparitively cloudy day they make water surprisingly hot.