How do I set up annual payment for iCloud storage. I DO NOT want a monthly payment plan

Apple doesn’t offer yearly plans. If you want additional iCloud storage, it must be a monthly plan. You can send feedback to Apple but seeing how they did away with the yearly plan several years ago, I would hazard a guess that they won’t be offering one again soon.

iCloud storage plans and pricing - Apple Support

Buy/redeem iTunes Gift cards to the account to cover the payment if you don't want your credit card charged every month.

App Store & iTunes Gift Cards by Email

Gift cards redeem

Gift Card - can’t redeem

You can pre-load your AppleID with sufficient funds for the year. But Apple is still going to only charge you monthly. They do not offer annual plans. So you either accept monthly iCloud invoicing or not, but there is no alternative payment periods.