We develop the design method of luminescence device with the strained quantum dots (QDs) on Si using a theoretical analysis on realistic structure. We have calculated numerically the first electron and heavy‐hole quantum levels of self‐assembled InGaAsN/GaP QDs using the finite element method, the model‐solid theory and the band‐anticrossing model. The calculation results indicate that N incorporation into InGaAs QDs drastically reduces the conduction band minimum (∼120 meV/N at%), and that it is shown enough energy difference between the first electron‐quantum level and GaP X‐state when N composition is 1∼2%. For self‐assembled In0.5Ga0.5As0.99N0.01/GaP QDs, the calculated transition energy at room temperature (RT) nearly matches with the measured photoluminescence (PL) peak energy. (© 2011 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)