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The phrase "penalty of" is correct and usable in written English.
You can use it to describe or indicate the consequences of breaking a rule or failing to meet an expected standard. For example: "The penalty of not paying taxes on time is a hefty fine."
Exact(57)
You might get a penalty of £60.
He knows the penalty of failure.
No penalty, of course.
That's Toulon's first penalty of the match.
The charge carries a maximum penalty of five years.
It was McKenzie's second unnecessary-roughness penalty of the quarter.
The charges carry a potential penalty of life in prison.
That offense carries a maximum penalty of life in prison.
Piracy convictions carry a maximum penalty of 15 years.
Air France-KLM received the biggest penalty, of €340m.
They owed a penalty of $59 for the original underpayment.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com