If you increase the h (=height), potential energy will be increased given by U=mgh.
Where does the energy go, into atoms?
If you increase the h (=height), potential energy will be increased given by U=mgh.
Where does the energy go, into atoms?
I would say that the energy is in some sense "stored" in the gravitational field. When the gravitational force is acting on your mass, it is "transferring" the energy from the field to the falling object (namely, its kinetic energy). You have the same situation in electromagnetism, the field has an energy density and that energy is "transferred via the Poynting vector". (This is just a simple way to imagine things, but not totally "true").
I think the clue is in the name - it's only potential energy, due to the position of an object in an external force field. The energy doesn't actually exist yet (although it can be converted into other forms of energy). It's not present in the molecules and it's not stored anywhere.
EDIT: Think I was a bit hasty on this one. $E=mc^2$ implies that the potential energy must exist, because mass exists. I'll think on it some more ...