diff --git a/docs/source/user_guide/index.md b/docs/source/user_guide/index.md
index 11d1e12ff7..f61d2fc253 100644
--- a/docs/source/user_guide/index.md
+++ b/docs/source/user_guide/index.md
@@ -75,9 +75,9 @@ glob:
 
 # Telemetry
 
-PyBaMM collects anonymous usage data to help improve the library. This telemetry is enabled by default but can be easily disabled. Here's what you need to know:
+PyBaMM optionally collects anonymous usage data to help improve the library. This telemetry is opt-in and can be easily disabled. Here's what you need to know:
 
 - **What is collected**: Basic usage information like PyBaMM version, Python version, and which functions are run.
 - **Why**: To understand how PyBaMM is used and prioritize development efforts.
-- **Opt-out**: To disable telemetry, set the environment variable `PYBAMM_OPTOUT_TELEMETRY=true` or use `pybamm.telemetry.disable()` in your code.
+- **Opt-out**: To disable telemetry, set the environment variable `PYBAMM_DISABLE_TELEMETRY=true` (or any value other than `false`) or use `pybamm.telemetry.disable()` in your code.
 - **Privacy**: No personal information (name, email, etc) or sensitive information (parameter values, simulation results, etc) is ever collected.
diff --git a/examples/scripts/compare_lithium_ion.py b/examples/scripts/compare_lithium_ion.py
index 4764778c34..6108036b9b 100644
--- a/examples/scripts/compare_lithium_ion.py
+++ b/examples/scripts/compare_lithium_ion.py
@@ -4,7 +4,6 @@
 import pybamm
 
 pybamm.set_logging_level("INFO")
-pybamm.telemetry.disable()
 
 # load models
 models = [
diff --git a/scripts/post_install.py b/scripts/post_install.py
deleted file mode 100644
index f9bd54e316..0000000000
--- a/scripts/post_install.py
+++ /dev/null
@@ -1,5 +0,0 @@
-import pybamm
-
-
-def run():
-    pybamm.config.generate()
diff --git a/src/pybamm/__init__.py b/src/pybamm/__init__.py
index 3a6f7eeddd..643248f5c7 100644
--- a/src/pybamm/__init__.py
+++ b/src/pybamm/__init__.py
@@ -227,3 +227,6 @@
     "version",
     "pybamm_data",
 ]
+
+
+pybamm.config.generate()
diff --git a/src/pybamm/config.py b/src/pybamm/config.py
index e60ad1d5d2..9e3029851b 100644
--- a/src/pybamm/config.py
+++ b/src/pybamm/config.py
@@ -2,6 +2,7 @@
 import os
 import platformdirs
 from pathlib import Path
+import pybamm
 
 
 def is_running_tests():  # pragma: no cover
@@ -33,6 +34,34 @@ def is_running_tests():  # pragma: no cover
     return any(runner in sys.argv[0].lower() for runner in test_runners)
 
 
+def ask_user_opt_in():
+    """
+    Ask the user if they want to opt in to telemetry.
+
+    Returns
+    -------
+    bool
+        True if the user opts in, False otherwise.
+    """
+    print(
+        "PyBaMM can collect usage data and send it to the PyBaMM team to "
+        "help us improve the software.\n"
+        "We do not collect any sensitive information such as models, parameters, "
+        "or simulation results - only information on which parts of the code are "
+        "being used and how frequently.\n"
+        "This is entirely optional and does not impact the functionality of PyBaMM.\n"
+        "For more information, see https://docs.pybamm.org/en/latest/source/user_guide/index.html#telemetry"
+    )
+    while True:
+        user_input = input("Do you want to enable telemetry? (Y/n): ").strip().lower()
+        if user_input in ["yes", "y"]:
+            return True
+        elif user_input in ["no", "n"]:
+            return False
+        else:
+            print("\nInvalid input. Please enter 'yes'/'y' or 'no'/'n'.")
+
+
 def generate():  # pragma: no cover
     if is_running_tests():
         return
@@ -41,8 +70,13 @@ def generate():  # pragma: no cover
     if read() is not None:
         return
 
+    # Ask the user if they want to opt in to telemetry
+    opt_in = ask_user_opt_in()
     config_file = Path(platformdirs.user_config_dir("pybamm")) / "config.yml"
-    write_uuid_to_file(config_file)
+    write_uuid_to_file(config_file, opt_in)
+
+    if opt_in:
+        pybamm.telemetry.capture("user-opted-in")
 
 
 def read():  # pragma: no cover
@@ -50,17 +84,17 @@ def read():  # pragma: no cover
     return read_uuid_from_file(config_file)
 
 
-def write_uuid_to_file(config_file):
+def write_uuid_to_file(config_file, opt_in):
     # Create the directory if it doesn't exist
     config_file.parent.mkdir(parents=True, exist_ok=True)
 
-    # Generate a UUID
-    unique_id = uuid.uuid4()
-
     # Write the UUID to the config file in YAML format
     with open(config_file, "w") as f:
         f.write("pybamm:\n")
-        f.write(f"  uuid: {unique_id}\n")
+        f.write(f"  enable_telemetry: {opt_in}\n")
+        if opt_in:
+            unique_id = uuid.uuid4()
+            f.write(f"  uuid: {unique_id}\n")
 
 
 def read_uuid_from_file(config_file):
diff --git a/src/pybamm/telemetry.py b/src/pybamm/telemetry.py
index 885249d22f..af91deca9d 100644
--- a/src/pybamm/telemetry.py
+++ b/src/pybamm/telemetry.py
@@ -14,14 +14,14 @@ def disable():
     _posthog.disabled = True
 
 
-_opt_out = os.getenv("PYBAMM_OPTOUT_TELEMETRY", "false").lower()
+_opt_out = os.getenv("PYBAMM_DISABLE_TELEMETRY", "false").lower()
 if _opt_out != "false":  # pragma: no cover
     disable()
 
 
 def capture(event):  # pragma: no cover
     # don't capture events in automated testing
-    if pybamm.config.is_running_tests():
+    if pybamm.config.is_running_tests() or _posthog.disabled:
         return
 
     properties = {
@@ -31,11 +31,6 @@ def capture(event):  # pragma: no cover
 
     config = pybamm.config.read()
     if config:
-        user_id = config["uuid"]
-    else:
-        user_id = "anonymous-user-id"
-        properties["$process_person_profile"] = False
-
-    # setting $process_person_profile to False mean that we only track what events are
-    # being run and don't capture anything about the user
-    _posthog.capture(user_id, event, properties=properties)
+        if config["enable_telemetry"]:
+            user_id = config["uuid"]
+            _posthog.capture(user_id, event, properties=properties)
diff --git a/tests/unit/test_config.py b/tests/unit/test_config.py
index 45c1260c09..68610f48ee 100644
--- a/tests/unit/test_config.py
+++ b/tests/unit/test_config.py
@@ -5,26 +5,38 @@
 
 
 class TestConfig:
-    def test_write_read_uuid(self, tmp_path):
+    @pytest.mark.parametrize("write_opt_in", [True, False])
+    def test_write_read_uuid(self, tmp_path, write_opt_in):
         # Create a temporary file path
         config_file = tmp_path / "config.yml"
 
         # Call the function to write UUID to file
-        pybamm.config.write_uuid_to_file(config_file)
+        pybamm.config.write_uuid_to_file(config_file, write_opt_in)
 
         # Check that the file was created
         assert config_file.exists()
 
         # Read the UUID using the read_uuid_from_file function
-        uuid_dict = pybamm.config.read_uuid_from_file(config_file)
-
+        config_dict = pybamm.config.read_uuid_from_file(config_file)
         # Check that the UUID was read successfully
-        assert uuid_dict is not None
-        assert "uuid" in uuid_dict
-
-        # Verify that the UUID is valid
-
-        try:
-            uuid.UUID(uuid_dict["uuid"])
-        except ValueError:
-            pytest.fail("Invalid UUID format")
+        if write_opt_in:
+            assert config_dict["enable_telemetry"] is True
+            assert "uuid" in config_dict
+
+            # Verify that the UUID is valid
+            try:
+                uuid.UUID(config_dict["uuid"])
+            except ValueError:
+                pytest.fail("Invalid UUID format")
+        else:
+            assert config_dict["enable_telemetry"] is False
+
+    def test_ask_user_opt_in(self, monkeypatch):
+        # Mock the input function to always return "y"
+        monkeypatch.setattr("builtins.input", lambda _: "y")
+
+        # Call the function to ask the user if they want to opt in
+        opt_in = pybamm.config.ask_user_opt_in()
+
+        # Check that the function returns True
+        assert opt_in is True