Google has confirmed that they will not count data occupied by a low resolution images against against PWA Storage limit. So there is no limit if you upload a small resolution images (800px or less) to Picasa web album.
It means you have unlimited storage for your small images. It will promote users to upload small size photos and share online. A Google employee “Sam” has confirmed this on official support forum.
In his word:
We recently made a change whereby any pictures 800 pixels and under don’t count towards used PWA storage. The new GB numbers you’re seeing are the result of quota recalculations that were made.
Definitely the resolution is too low if you use Google Picasa for backup your images. You will have to pay little buck for that if you wish to use more than 1024MB. Here is the current price list if you wish more storage:
20 GB ($5.00 USD per year)80 GB ($20.00 USD per year)200 GB ($50.00 USD per year)400 GB ($100.00 USD per year)1 TB ($256.00 USD per year)
As you seen the rates are too competitive. You may signup for the extra storage. I wold like to clarify that, If you will signup for the first year and do not want to continue from next year. The uploaded images will not be deleted. You will not be able to upload any new files to your Picasa web albums.
Sam has also mentioned:
“All videos under 15 minutes also don’t count towards used PWA storage. This does not affect total GB usage for Gmail.”