If you already having latest update from youtube addon or please update if you still dont, setting this is very straight forward

Kodi Youtube Quota Exceed Limit and How to Fix

  • Select Youtube Addon, Hold few second and release. Or Right Click if you on computer
  • List of Menu appear
  • Select Setting
  • Go to API menu
  • Enable API. API key will appear. Change nothing.
  • Select OK
  • Done

If you still want to use non updated Youtube addon. Then you need to key in api key manually. And its case sensitive. Uppercase and lowercase must be exactly same

Kodi Error Youtube Quota Exceed Limit
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