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Potential energy is the opposite of Kinetic energy. Kinetic energy is energy being exerted while potential energy is energy that's stored up and can be 'potentially' used. The total amount of potential energy and kinetic energy must always stay the same.

An example is when you drop a ball. Before you drop it all the energy is potential because the ball is not moving. When the ball is halfway down, half the total energy is potential and half is kinetic. When the ball reaches the ground, all the energy has turned into kinetic.

Physics generally defines potential energy due to gravity as mgh, where m = mass, g = gravity (9.81 m/s) and h = height above the ground. There's also elastic potential energy which is 1/2kx^2 where k = a spring constant and x = distance away from equilibrium.

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