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Formation energies for Ge/Si(100) pyramidal islands are computed combining continuum calculations of strain energy with first-principles-computed strain-dependent surface energies. The strain dependence of surface energy is critically impacted by the presence of strain-induced changes in the Ge {100} surface reconstruction. The appreciable strain dependencies of rebonded-step {105} and dimer-vacancy-line-reconstructed {100} surface energies are estimated to give rise to a significant reduction in the surface contribution to island formation energies.