I kept wondering why my storage meter wasn't increasing on Picasa Web. It turns out they don't "charge" for storage if photos and videos are below a certain size or length.
"Free storage limits
Picasa Web Albums offers 1 GB of free storage for photos and videos. However, files under certain size limits don't count towards this free storage limit. This applies to uploads for other Google product that store photos and videos in Picasa Web Albums, including Blogger, Google+ and Google Maps.
The free storage sizes are good for sharing photos on the web, but if you prefer to upload your images at a larger size for better quality (archival or print), you can buy more storage at any time. Learn more"