What happens to energy stored in an inductor when the current changes?

The energy stored in an inductor when the current changes primarily does not dissipate as heat. Instead, it is important to understand that the inductor stores energy in the magnetic field created by the flow of current through it. When the current through the inductor changes, this magnetic field also changes, which can induce a voltage in accordance with Faraday's law of electromagnetic induction.

When the current decreases, the energy stored in the magnetic field is released back into the circuit, typically causing the inductor to supply energy to other components in the circuit rather than dissipating it as heat. This energy release can manifest as a voltage spike, which can lead to inductive kickback, especially in applications with coils or inductors.

When the current through an inductor is steady and then decreases, the stored energy is not simply maintained (which would imply it remains constant) nor is it transformed into capacitance – which doesn't occur in inductive components. So, the energy actually flows back into the circuit rather than being converted into heat or capacitance. Thus, the optimal understanding of what happens to the energy in an inductor is that it is released or transformed into other forms of energy, directly influenced by the changes in the current flowing through it.