diff --git a/conf/homeserver.yaml b/conf/homeserver.yaml
index f68cc24..1c7b5b0 100644
--- a/conf/homeserver.yaml
+++ b/conf/homeserver.yaml
@@ -2167,7 +2167,7 @@ __DOMAIN_WHITELIST_CLIENT__
 password_config:
    # Uncomment to disable password login
    #
-   #enabled: false
+   enabled: __PASSWORD_CONFIG_ENABLED__
 
    # Uncomment to disable authentication against the local password
    # database. This is ignored if `enabled` is false, and is only useful
diff --git a/scripts/install b/scripts/install
index 1248241..4e89dfe 100644
--- a/scripts/install
+++ b/scripts/install
@@ -272,9 +272,11 @@ if [ $is_free_registration -eq 0 ]
 then
     allowed_access=False
     sso_enabled=True
+    password_config_enabled=False
 else
     allowed_access=True
     sso_enabled=False
+    password_config_enabled=True
 fi
 
 ynh_add_config --template="homeserver.yaml" --destination="/etc/matrix-$app/homeserver.yaml"