Potential energy refers to the stored up energy within an object, that builds up and can potentially be used to propel that object.
Explanation:
A famous example, would be water behind a dam. The rushing water fills up behind the dam, and since it's being held in one place, it will build up until of course the dam is either moved or lifted, and then all the water will be forced (due to all the energy that was being stored) down the rest of the stream.
I hope the explanation makes sense. If it doesn't, please let me know and I'll try to find another one for you :)
Potential energy is the an objects energy that is currently not being used but can be used. Example: A ball at the top of a hill is full of potential energy, and as soon as it begins rolling that becomes kinetic energy because it is in use. (Hard to explain but I hope this helps.)
