The plan will involve up to 40 schools, and will focus on raising the quality of teaching through sharing expertise with successful schools.
First Minister Carwyn Jones said: "If we’re to raise standards and performance in education in Wales across the board we need to boost attainment levels of schools which are underperforming and we know could do better. The significant funding we’ve announced today is going to make a huge difference to those schools chosen to take on Schools Challenge Cymru."
New data from Ofqual shows that schools and colleges across England are making progress in cyber security training, but are struggling to recover quickly from attacks when they occur.
Three schools have been fitted with solar panels over the summer as part of a government-funded scheme, with eight more schools set to get their solar panels this autumn.