What does it mean that Jesus is our penal substitute?

Being our penal substitute means that Jesus took upon Himself the punishment our sins deserved, thereby satisfying God's justice on our behalf. The sermon references Isaiah's portrayal of Christ, who was 'wounded for our transgressions' and 'bruised for our iniquities'. This substitutionary atonement is central to Reformed theology, affirming that through Jesus' suffering and death, believers are justified and declared righteous before God. It underscores the grace that allows us to stand not in our own merit but clothed in the righteousness of Christ, who endured the penalty due to us, allowing for reconciliation between God and His people.