The term "thermal energy" is used loosely in various contexts in physics and engineering, generally related to the kinetic energy of vibrating and colliding atoms in a substance. It can refer to several different physical concepts. These include the internal energy or enthalpy of a body of matter and radiation; heat, defined as a type of energy transfer ; and the characteristic energy of a degree of freedom, , in a system that is described in terms of its microscopic particulate constituents.

Thermal energy storage (TES) is the storage of thermal energy for later reuse. Employing widely different technologies, it allows surplus thermal energy to be stored for hours, days, or months. Scale both of storage and use vary from small to large – from individual processes to district, town, or region. Usage examples are the balancing of energy demand between daytime and nighttime, storing summer heat for winter heating, or winter cold for summer cooling. Storage media include water or ice-slush tanks, masses of native earth or bedrock accessed with heat exchangers by means of boreholes, deep aquifers contained between impermeable strata; shallow, lined pits filled with gravel and water and insulated at the top, as well as eutectic solutions and phase-change materials.