"Το φανάρι είναι κόκκινο."
Translation:The traffic light is red.
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If we had wanted to describe more than one light we would have used the plural.
For example, there might be one red light on the right side of the road, and one on the left in a large intersection. Or maybe two sets of lights in the same place - one for the straight lane and one for the lane turning right.
However, the sentence says "The light was red."
Therefore, we need the singular.