reverted:
--- b/core/includes/config.inc
+++ a/core/includes/config.inc
@@ -12,24 +12,22 @@
  */
 
 /**
+ * Installs the default configuration of a given module.
- * Installs the default configuration of a given extension.
  *
+ * @param
+ *   The name of the module we are installing.
- * @param string $type
- *   The extension type; e.g., 'module' or 'theme'.
- * @param string $name
- *   The name of the module or theme to install default configuration for.
  *
  * @todo Make this acknowledge other storage engines rather than having
  *   SQL be hardcoded.
  */
+function config_install_default_config($module) {
+  $module_config_dir = drupal_get_path('module', $module) . '/config';
+  if (is_dir($module_config_dir)) {
+    $source_storage = new FileStorage(array('directory' => $module_config_dir));
-function config_install_default_config($type, $name) {
-  $config_dir = drupal_get_path($type, $name) . '/config';
-  if (is_dir($config_dir)) {
-    $source_storage = new FileStorage(array('directory' => $config_dir));
     $target_storage = new DatabaseStorage();
     $null_storage = new NullStorage();
 
+    // Upon module installation, only new config objects need to be created.
-    // Upon installation, only new config objects need to be created.
     // config_sync_get_changes() would potentially perform a diff of hundreds or
     // even thousands of config objects that happen to be contained in the
     // active store. We leverage the NullStorage to avoid that needless
reverted:
--- b/core/includes/install.inc
+++ a/core/includes/install.inc
@@ -387,7 +387,7 @@
   system_rebuild_module_data();
   system_rebuild_theme_data();
 
+  config_install_default_config('system');
-  config_install_default_config('module', 'system');
 
   module_invoke('system', 'install');
 }
reverted:
--- b/core/includes/module.inc
+++ a/core/includes/module.inc
@@ -462,7 +462,7 @@
         $version = $versions ? max($versions) : SCHEMA_INSTALLED;
 
         // Install default configuration of the module.
+        config_install_default_config($module);
-        config_install_default_config('module', $module);
 
         // If the module has no current updates, but has some that were
         // previously removed, set the version to the value of