The formula $$e = \frac{1}{2} cv^2$$ represents the energy stored in a capacitor, where 'e' is the energy in joules, 'c' is the capacitance in farads, and 'v' is the voltage across the capacitor in volts. This equation illustrates how a capacitor stores electrical energy when a voltage is applied across its plates, showcasing the relationship between capacitance, voltage, and stored energy. Understanding this formula is essential for analyzing how capacitors function in electrical circuits and their role in energy storage.