Google have reduced their prices significantly on added storage options. They have marketed it, and it has been reported, as price reductions for Google Drive. As far as I can tell though, the storage space is spread across Gmail, Drive and Google+ Photos just like before.
Currently I am on a legacy storage plan which I started before Picassa was replaced with Google+ photos. At the time I was approaching the 1GB or 2GB limit for photos and you could get an extra 10GB for $5 a year (now increased to 20GB).
The pay yearly plans were replaced with monthly ones which to me seemed expensive and became increasingly unnecessary when Google kept adding on free storage up to 15GB and (combined with my 62GB on Dropbox and 25GB on Skydrive, now called Onedrive, I had more than enough space).
However, yesterday's announcement makes it very tempting to switch from my legacy plan with monthly costs starting at around £1.20 for 100GB and a whole 1TB for the bargain price of around £6.20 per month.
An alternative to the cloud service offerings is of course to provide your own. This can be done via a NAS drive such as the My Cloud from WD, or using software such as OwnCloud (a helpful how-to on Lifehacker here). People have been able to use network storage devices for years but now, for the home user, they are easier than ever to set up and usually come with a host of mobile applications to access your files and media.
For most people though the big three mentioned above will meet their needs, and the price changes are a big positive.
Google's new prices are shown below.