As a former adherent of Reformed Theology, I always found myself quite confused by the Lutheran doctrine of Baptismal Regeneration. Now as a "Lutheran in-progress", I'm still confused, but not in the same way that I was when I was Reformed. Now that I look back, I believe that much of my confusion came from thinking of Luther as Calvin before Calvin. This seemed to be how all Calvinists I talked to and read portrayed Luther. I always assumed that Luther was Reformed, and he must've viewed baptism in the same way that I did. I always assumed that Lutherans were just a more Catholic version of Calvinists. Boy, was I wrong.
To my surprise, when I actually began reading Luther's Smaller and Larger Catechisms, and the Augsburg Confession last summer (I'm still not finished with the Book of Concord), I quickly came to realize that Luther was absolutely not a Calvinist, and he didn't think of baptism in the way that I did as a Reformed Christian. It was actually at this point that I found out that Luther didn't think about baptism the same was that Calvinists did, because Calvinism has departed from nearly 2,000 years of church history in their understanding of baptism. Luther was merely confessing what the church had confessed since the time of Christ.
At this point, I began to ask myself "how could baptism do such great things?" and "isn't this a compromise of Sola Fide?" I, like other Reformed Christian's that I knew, was convinced that it was.
However, to my surprise Luther in his Smaller Catechism actually answers these questions quite handedly. In section four, titled "The Sacrament of Holy Baptism", Luther says, "it is not the water indeed that does them, but the word of God which is in and with the water, and faith, which trusts such word of God in the water. For without the word of God the water is simple water and no baptism."
So, as we see Lutheranism teaches that it is not the water that saves, rather it is the Word of God that is in and with the water that creates faith in a person that saves. We are saved by faith alone, and faith is objectively given and tied to Holy Baptism. It i
s a means by which God bestows grace, which creates faith. As the Augsburg Confession states, "through Baptism is offered the grace of God". God uses the means of grace to create faith; that is the preaching of the Scriptures, Holy Baptism, and the Lord's Supper.
Luther in his Larger Catechism expands further saying, "c
omprehend the difference, then, that Baptism is quite another thing than all other water; not on account of the natural quality but because something more noble is here added; for God Himself stakes His honor, His power and might on it. Therefore it is not only natural water, but a divine, heavenly, holy, and blessed water, and in whatever other terms we can praise it,-all on account of the Word, which is a heavenly, holy Word, that no one can sufficiently extol, for it has, and is able to do, all that God is and can do [since it has all the virtue and power of God comprised in it]. Hence also it derives its essence as a Sacrament, as St. Augustine also taught: Accedat verbum ad elementum et fit sacramentum. That is, when the Word is joined to the element or natural substance, it becomes a Sacrament, that is, a holy and divine matter and sign."
These statements by Luther demonstrated to me that the Lutheran doctrine of Baptismal Regeneration is not a compromise of Sola Fide. Lutherans confess that baptism is not mans work, but God's work. Holy Baptism is the Word of God joined together with the element of water, making it a holy and divine sacrament. When a person is baptized, it is not the water that changes them, rather it is the Word of God. The Word of God in baptism creates faith, and it is this faith alone that saves. Thus, the doctrine of Sola Fide is preserved.