Panasonic G9 has a 20.0MP Four Thirds
(17.3 x 13 mm ) sized CMOS sensor . On the other hand, Panasonic SZ7 has a 14.0MP 1/2.3-inch
(6.08 x 4.56 mm ) sized CMOS sensor .
Panasonic G9's sensor provides 6MP more than Panasonic SZ7's sensor, which gives a significant advantage in real life. You can print your images larger or crop more freely.
On the other hand, please keep in mind that Max sensor resolution is not the only determinant of resolving power. Factors such as the optical elements, low pass filter, pixel size and sensor technology also affects the final resolution of the captured image.
Another difference between these two cameras is that Panasonic G9's sensor lacks anti-alias (Low-Pass) filter. Removing anti-alias filter increases the sharpness and level of detail but at the same time, it increases the chance of moiré occurring in certain scenes.
Below you can see the G9 and SZ7 sensor size comparison.
As seen above, Panasonic G9 has a 8.1x Larger sensor area than Panasonic SZ7. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.